SAS will not use second tranche of $700 million Apollo loan

COPENHAGEN (Reuters) – SAS will not be using the second tranche of its $700 million debtor-in-possession (DIP) term loan in the second quarter of the year, due to stronger than expected development of the airline’s liquidity, the airline said on Monday.

SAS may, depending on the development of its liquidity, continue discussions with Apollo regarding access to the second tranche of the DIP term loan at a later stage of the Chapter 11 process.

The airline will continue to pursue other financing initiatives that could boost its liquidity at a lower cost than a near-term use of the second tranche of the DIP term loan.

(Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik)